Bortello Corporation produces high-quality leather boots. The company has a standard cost system and has set the following standards for materials and labor:

Leather (12 strips @ $20)$240Direct labor (10 hours @ $12)$120Total prime cost$360

During the year Bortello produced 125 boots. Actual leather purchased was 1,700 strips, at $16 per strip. There were no beginning or ending inventories of leather. Actual direct labor was 1,500 hours at $15 per hour.

Calculate the labor rate variance and the labor efficiency variance, respectively.

a.$4,500 U and $3,000 U

b.$4,500 F and $3,000 U

c.$4,500 F and $3,000 F

d.$4,500 U and $3,000 F